Answer:
The correct answer is that Deb will have to pay US$ 6,914.25 at the end of the loan.
Step-by-step explanation:
Loan in US$: 6,300
Term: One Year
Interest rate: 9.75% annually
1. Let's calculate how much money Deb will pay in interests for the loan:
Loan * Interest rate * Term
6,300 * 0.0975 * 1
614,25
Deb will have to pay US$ 614,25 in interests for the loan
2. Let's calculate how much money Deb will pay back at the end of the loan term
Loan in US$ + Interests in US$
6,300 + 614,25
6,914,25
At the end of the loan Deb will have to pay $ 6,914.25
